US President Donald Trump on Monday signed an executive order to extend the China tariff deadline by an additional 90 days, CNBC reported, quoting a White House official confirming the development.
The order followed a non-committal answer by Trump to reporters as to whether he would extend the lower tariff rates a day after he urged Beijing to quadruple its purchases of US soybeans.
The tariff truce between Washington and Beijing was scheduled to expire at 12:01 AM on August 12 (04:01 GMT), but the Trump administration had indicated the possibility of an extension.
This extension of the deadline follows the recent round of trade negotiations between US and Chinese officials held last month in Stockholm.
Before this announcement, Trump said earlier today that the United States has been "dealing very nicely with China," while Beijing said it was seeking positive outcomes.
While the United States and China slapped escalating tariffs on each other's products this year, reaching prohibitive triple-digit levels and snarling trade, both countries in May agreed to temporarily lower them.
Both the US and China agreed to ease tensions after talks in Geneva in May, but their agreement has been unstable.
In June, economic officials met in London, but disagreements arose, with the US accusing China of breaking the deal. They met again in Stockholm last month.
Although both countries want to delay bringing back tariffs, US trade envoy Jamieson Greer said Trump will make the final decision on any extension.
Last week, US Commerce Secretary Howard Lutnick said Trump is likely to extend the tariff pause by another 90 days.
On Sunday, Trump posted on social media that he hopes China will “quickly quadruple its soybean orders” to help balance trade.
Currently, US tariffs on Chinese goods are at 30%, while China’s tariffs on US products stand at 10%.
Since January, Trump has imposed a 10% “reciprocal” tariff on most trading partners to address what he calls unfair trade practices.
Last Thursday, these tariffs increased for many countries; for example, the EU, Japan, and South Korea now face a 15% US duty on many products, while Syria’s rate went up to 41%.
These “reciprocal” tariffs don’t include sectors like steel, aluminum, pharmaceuticals, or semiconductors, which have separate tariffs or investigations.
Trump has also targeted countries like Brazil, over the trial of former president Jair Bolsonaro accused of planning a coup, and India for buying Russian oil.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
